The complaint against Cleveland-based DDR, filed Wednesday in New York State Supreme Court here, says that although Coventry negotiated for "first class" leasing, management and development services on the properties, DDR failed to provide them. Further, the complaint says that DDR "left Coventry in the dark" when it came to financial, development and leasing reports on the properties, which the two companies acquired between 2003 and 2006 in a co-investment agreement.

Also alleged in the complaint is that DDR's intent was "to allow the properties to flounder and ultimately fail, while focusing on its real goal: collect as much in fees as possible while making only the most cursory effort to perform its responsibilities." The rationale, according to the complaint, was that DDR as a publicly traded company wanted to boost its short-term earnings "without regard for the long-term health of the properties." Coventry is seeking at least $500 million in consequential and punitive damages, according to the complaint.

"After attempting for years to compel DDR to live up to its obligations, it is with great reluctance that we take this step," Peter Henkel, Coventry's president and CEO, says in a release. "We have, however, a fiduciary obligation to protect the significant investment of hundreds of millions of dollars made by many institutional investors, including pension and retirement funds on behalf of their investors."